The Keynesian model of macro equilibrium provided an explanation for the:
a. high rates of both unemployment and inflation experienced during the 2110s.
b. prolonged high rates of unemployment experienced during the 1930s.
c. low interest rates of the 1950s and 1960s.
d. budget surpluses and rapid growth of the U.S. economy during the 1990s.
b
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Monetary policy to stabilize the nation is less desirable whenever:
A) the nation is a net external debtor with liabilities denominated in foreign currency. B) the nation is a net external creditor with assets denominated in foreign currency. C) the central bank of the nation must also finance government deficits. D) the government is unable to raise taxes sufficiently to lower its deficit.
Expenditure switching refers to
A) a switching back and forth between investment and consumption expenditures. B) a switching back and forth between domestic and foreign goods in response to changes in the exchange rate. C) a switching back and forth between domestic and foreign goods in response to changes in the interest rate. D) a switching of back and forth in the current account from a deficit to a surplus and vice versa. E) All of the above.